Planning Commission Meeting – October 21, 2025

The Chapel Hill Planning Commission met virtually on October 21, 2025, at 6:00 PM to consider a proposed modification to the conditional zoning district for the Hillmont development. The applicant requested to reduce the number of on-site affordable housing units from 43 to 20, and to provide a $1.15 million voluntary payment in lieu to the town’s affordable housing fund. After extensive discussion, the commission voted to transmit comments without a formal recommendation to the Town Council.

Consent Calendar

• Approved the draft minutes from the October 7, 2025 meeting by unanimous roll call vote.

Public Comments & Testimony

• No members of the public spoke during the meeting.

Discussion Items

• Conditional Zoning Modification for Hillmont (146 Stancell Drive):
  • Applicant (Adam Golden, Northwood Raven): Requested to modify the existing Conditional Zoning District to change the affordable housing plan from 43 on-site units (10% of market-rate units, half at 60% AMI, half at 80% AMI) to a minimum of 20 on-site units plus a $1.15 million voluntary contribution to the town’s affordable housing fund. The contribution would be made within 45 days of approval, far earlier than typical payments in lieu (which are due at certificate of occupancy). The applicant stated the change would simplify traditional financing, as lenders find the affordable housing component complex in the current market. He emphasized there is no net financial benefit to the developer; the modifications are intended to make financing feasible and to help the town fill a funding gap identified in a September council hearing (where four projects needed funds but only two could be supported, leaving a gap of approximately $1.1 million). The proposal would leave all other project conditions unchanged, and the project would still provide 20 on-site units under the same affordability levels as originally approved.
  • Staff Presentation (Anna Scott, Planning Department): Confirmed the request is to modify the affordable housing plan only. Staff recommended that the Town Council consider the modification subject to the conditions in Ordinance A, noting the proposal aligns with complete community goals because the project itself is not changing. Staff noted that on-site units would be available sooner than units funded through a payment, and affirmed the proposal had been developed in conversation with the town’s affordable housing team.
  • Commissioner Questions and Discussion:
    • Commissioner Green raised a technical question about a reference in the ordinance to blocks A, B, and C; staff confirmed that the project is now being built in one phase, so the reference needed updating before council consideration.
    • Commissioner Mills asked why the applicant did not simply double the payment in lieu and eliminate all on-site units for greater simplicity. Applicant responded that option is on the table, but staff expressed a preference for maintaining some on-site units.
    • Commissioner Thomas asked whether the town’s affordable housing department had a preference and how $50,000 per unit (the implied value from the payment relative to lost units) compares to replacement costs. Staff replied that trade-offs were considered and the proposal is acceptable, but that $50,000 per unit may not fully replace a unit.
    • Commissioner Zibaie stated that the affordable housing department’s buy-in and the speed of delivering units are positive factors.
    • Commissioner Mills (Chuck) expressed strong concern that reducing from 43 to 20 units (from 10% to below 5% of market-rate units) is unacceptable. He stated that on-site units are more valuable than payments in lieu, and argued that the town should try to secure as many on-site units as possible. He proposed a compromise of 30 units and a $1 million payment.
    • Commissioner Green acknowledged the financing challenges but noted the value of integrated affordable housing was being reduced.
    • Commissioner Mitchell stated he was neutral and recommended that the council hear directly from the affordable housing department about the calculus and whether the modification is beneficial.
    • Commissioner Losos questioned the wisdom of a partial payment–partial unit approach, suggesting it might be less beneficial than either a full payment or full on-site commitment.

Key Outcomes

• Motion to Recommend Approval of Resolution A (Consistency with Comprehensive Plan): Passed unanimously (6–0).
• Motion to Recommend Approval of Ordinance A (Modification) without amendments: Failed for lack of a second.
• Motion to Recommend Approval with amendments (30 units, $1 million payment): Failed (2 yes, 3 no, 1 abstain).
• Motion to Transmit Comments without a Recommendation (proposed by Commissioner Mitchell, seconded by Commissioner Mills): Passed (4 yes, 1 no, 1 abstain).
• Adopted Comments to be Transmitted to Town Council:
  1. Council should hear from affordable housing staff about whether they believe the modification is beneficial and why.
  2. Planning Commission believes that, in general, on-site units are more valuable than payments in lieu, and the town should try to secure as many on-site units as possible.
• Next Meeting: November 18, 2025. The December 16 meeting was canceled; the January 6, 2026 meeting may be canceled if no agenda items arise.